The PlayStation 3 certainly weighs heavy on the mind of Sony, since it is reporting that for the fiscal quarter ending March 2007, the company experienced a loss of US$563 million. Compared to the same period one year ago, the loss increased by approximately $7.5 million.

Missing the sales goal of 6 million PS3 units by half a million–Sony admits stiff competition with the Nintendo Wii–is affecting sales and production costs for the PS3, and it will keep the gaming side of Sony in the red. Sony, however, insists that a turnaround is coming as the PS3 gaming lineup improves this summer and expects to sell 11 million PS3 consoles by end of fiscal year, March 2008. Combine a better gaming library with previously announced drop in production costs for the PS3 (see previous coverage), the future for the PS3 could look brighter for Sony.

PS3 aside, certainly the company cannot blame its financial problems solely on the next-gen gaming console. A recall of 10 million lithium-ion laptop batteries also took a big chunk out of Sony's pocketbook.

360 / wii / ps3(11:06am EST Thu May 17 2007)Sony has an uphill battle. They do need games to distinguish them from the rest, at least in the US market…

Right now the 360 is viewed as superior by many right now due to hits like GOW and upcoming Halo 3. Very important games like MGS4 / FXIII seem to be pegged for 2008 releases which may be a bit late coming after the Christmas season.

I haven't played a Wii yet, but I can't help to wonder if the novelty will wear off after a while. I don't think motion controls are always better than your standard control pad. Nintendo makes the best games in the biz though, so I believe they will hold their own in the long run.

All in all, I think this will be the closest console race yet. All 3 will come out winners in the long run, but it may take Sony a while to recover its losses.

I own a 360 and am very happy with it. I'd like to get a PS3 some day, but not until better games arrive on it.

I'll get a Wii in due time to replace my gamecube in due time as well. *I'll never sell my Resident Evil games* – by Mogg

. . . (11:32am EST Thu May 17 2007)I find it interesting that Sony “admits stiff competition with the Nintendo Wii” but still can’t admit the same from the XBOX 360. Are they too proud or simply delusional? Maybe they have admitted it somewhere else? – by strict9

Mogg(11:40am EST Thu May 17 2007)The Wii is an awesome system but the few people that I know who own one admit that it doesn't get much use anymore. I don't think the problem is that the “novelty” has worn off as much as the lack of games. Although, I do think the idea of the motion sensor is very novel and will get tiresome very quickly. I had a power glove when I was young and I loved it for about a week. I’d actually buy a Wii if I wasn’t worried about one of my drunken friends tossing the controller through my big screen. I’d even buy a PS3 but I only have room for one over priced console this year, maybe next. – by strict9

Perspective(12:14pm EST Thu May 17 2007)Sony has a market cap that utterly dwarfs most companies. But let's take a company that recently announced a very similar loss in US Dollars. AMD.

Before the doom sayers jump off the bridge over this, bear in mind that AMD made a quarterly loss of more or less that same amount. And yet the size of AMD, it's market capitalization, is miniscule when compared to Sony. (AMD = $8.6 B and Sony = $54.7 B)

I have to wonder how many of the battery recalls and PS3 sales were charged to the reported period.

One thing I do note from the report is that Sony is reporting selling 5.5 million PS3s.

5.5 million units of PS3. That's quite a lot. Clearly no where near as many as Nintendo Wii . However, 5.5 million compares pretty favorably with the 360 sales over the first six months of it's launch. If you are trying to understand why Sony points to stiff competition from Nintedo, I think that may be your answer.

I can't wait to see how this shakes out over time. The Wii is a light burning oh so very brightly. I wonder whether it might burn itself out as it's luster and appeal diminish as next generation visuals and game play on 360 and PS3 start to show their worth.

I think it might be worth pointing to an old and well known story starring a hare and a tortoise. Something to do with a race, and the hare that takes off at a fast pace, and yet still loses the race.– by HighlandCynic

Dont put your eggs on one basket(2:13pm EST Thu May 17 2007)well, I was really hoping I would see some nextgen games from Sony more of an exclusive lineup. It's unfortunate that their library is somewhat coming late from what came out from Xbox360, the exclusive Liar is something that I might wait for until alot of gaming review sites gives the good thumbs up for it.

Still, as long as Metal Gear and GTA comes out for PS3, it's as good as sold. Meanwhile, it will be just my decorating my coffee table.

Xbox360 has Halo3, and the company that makes it are putting their eggs in one basket. You see when Halo came out, it was the best graphically fun FPS at that time. This time Halo 3 doesn't look so stunning, and the added gameplay fun, didn't really stray out from the formula. Hmmm, company like Sony and MS get relax on their laurels, that they drop their guard down thinking, “Yeah we are the best in our business”.

Here is something gamers should do, SMACK their faces and get those people have better creative, innovative games on the spotlight. – by Greekgod

sheehs(2:18pm EST Thu May 17 2007)Correction…it will be just decorating my coffee table.

Also FF XIII. For winter time. – by Greekgod

Why Does Sony Refuse To Acknowledge The 360?(3:30pm EST Thu May 17 2007)It cracks me up that they talk about the Wii but never mention the 360, which is still doing pretty good all things considered…

Sony experiencing a little self-denial? – by Baibbas

ha ha ha(3:09pm EST Sat May 19 2007)Sony eats more S#it.

Still waiting for sony to redeem themselves…Spider Man 3 sucked, so that didn't do it…MGS4 pushed back, AGAIN, so that didn't do it…P$3 no price drop for this holiday season, so that didn't do it…

Screw sony.– by the_Real_Mark

Mark(3:49pm EST Mon May 21 2007)This would be another example of your renowned balance and open mindedness?– by highlandcynic

HC(1:22am EST Tue May 22 2007)Screw you too. Howabout something new and great Sony's done for their fans…